Cash-Rich Asian Companies Face North American Snub

10/22/2012 2:17AM

Opposition in Canada to a bid by Malaysia's Petronas for one of its gas companies could signal tough times for Asian companies seeking acquisitions in North America. The WSJ's Simon Hall tells us why the Petronas deal could set a bad precedent.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... Canada's rejection of Malaysia's that ... this is a for one of its gas companies can sing well hundred times printing company seeking acquisitions in North America ... I'm Deborah con and I'm joined now by Beazer's editor Simon Hall ... at simon while Encana reject this deal in particular is in a case of protectionism ... well the Canadian government didn't give any formal reason for the rejection other than saying it wasn't uncommon has net contracts ... this ... rejection makes Friday the very last minute of the of the review presence came as a big shell full ... attendance and any other industry watchers who thought this would go through on the mark ... remember come to the house a long history of rejecting ... investments in its resources sector is back in two thousand and ten ... Australian mining giant BHP pushback when it tried to buy Potash called for forty billion dollars ... the kid that at the end the day how important our gas exports to Canada's economy adding it to six and is relying on exporting gas to ban on ... exports ... more energy in the form of while the amendment that gas is one of its huge potential big winners in the future ... not come about has at least three in as many as five With LNG Export ... op project and I've been pound of being worked on ... to export gas from Western Canada through to the growing Asian markets ... to ... the gas exports rose a big deal potential gas exports ... now Resources Minister Joe Oliver said just a couple of months ago that ... if all these projects went ahead ... Canada would be exporting somewhere in the region of ... sixty six million tons of LNG at the yet not I figure doesn't mean much about people but to put that into context ... death of the world's biggest export of LNG that's gets this show sinking ship and tying his ... cousin Expo pension of seventy seven site with pretty close behind what kept on this one also in the same ballpark as the sun is this the Pentagon sector Australia so this is a big deal for ... Canada ... not in rejecting this ... deal ... this all sorts of things the way here is also key factors you need to consider ... employment just won just one of these LNG ... export terminals are being talked about ... four ... cups employs three hundred people got on top of that ... you're investing billions of dollars in building this thing it's a big comfort that a bit of kit ... plus ... thousands and thousands of kilometers of pipelines ... the prophetic of the export revenues ... through ... it did come as a surprise that this big potential ... export ... unbecoming Group has just been shot down by the government not entirely shut down because preparedness has thirty days to come up with some new ... bits and we have talked of the world from that read this since this announcement was made ... I guess what a lot of people I say it thinking right now is what is this mean I mean you have that cash rich Asian companies looking ... to acquire resource companies and in places like Canada so what is this mean going forward ... and it could this be a worry to a lot of of BCG Asian companies ... for sure I get some emotional people in the world ... on Friday night Saturday morning when Chinese state oil company executives executives from Seno ... which has its own bid for a major Austria for a Canadian company under the same and breaking a three person sets the scene of his trying to buy ... next and ... next and destructive defeat based Nexon is more from oil and gas play ... that were talking with Cineplex on the fifteen billion dollar ... takeover ... that refuse to to profits to be concluded by them into the November St this is a big fail ... if ... the Canadian government feels comfortable ... with them and they show which one might consider a more ... benign than faster than China ... um what is the safer the China Daily hence the Chinese must be pretty worried about what happened ... and is still high is just about five billion versus the fifteen Billy and I in intensity as they would have a significant impact in the sector ... thank you very much tree Sears editor sign in hell ... for that star am more indebted Des beest dot com I'm Deborah con for The Wall Street Journal digital network ...